The electric commercial vehicle market is set to experience an impressive growth, expanding by $166.58 billion during the period from 2022 to 2027. Anticipated to progress at a Compound Annual Growth Rate (CAGR) of over 26.02% throughout the forecast period, the market is segmented by product, type, and geography, the latest report from Technavio Research noted. With the rising adoption of electric vehicles for enhanced logistics and transportation, the market is driven by the increasing demand for improved sustainability and operational efficiency.
Market Trends, Challenges
According to the report, the primary trend driving market growth is the integration of telematics and autonomous technologies into Electric Commercial Vehicles (ECVs). To ensure smoother operations and improved efficiency, companies are increasingly focusing on incorporating these advanced technologies into ECVs. However, one of the major challenges faced by the market is the high cost associated with ECVs, owing to the substantial capital investment required for their production. The varying costs of electric vehicles are influenced by several factors, including the brand and the type of battery used in the commercial vehicle.
Growth Factors and LCV Segment Analysis
The segment expected to witness significant growth during the forecast period is Light Commercial Vehicles (LCVs). Designed primarily for goods transportation, LCVs are experiencing increased demand due to the rapid growth of the retail and e-commerce industries, mounting traffic congestion in urban regions, and ongoing technological advancements. Moreover, the introduction of new types of light commercial vehicles by automakers is further propelling the expansion of the LCV segment within the electric commercial vehicle market. Stringent regulations on emissions from LCVs are also contributing to the growing demand for electric light commercial vehicles worldwide, the report noted.
Courtesy: Technavio Research. Photo is representational: Courtesy: Volvo Trucks.